PRECIOUS-Gold holds above $1,400, weak U.S. data helps

Reuters Staff

4 Min Read

SINGAPORE, Aug 27 (Reuters) - Gold held above $1,400 an
ounce on Tuesday, hovering near its highest in 11 weeks,
supported by weak U.S. data that traders hoped could stymie the
U.S. Federal Reserve's plan to taper its stimulus measures this
year.
FUNDAMENTALS
* Spot gold had fallen 0.1 percent to $1,402.56 an
ounce by 0007 GMT, while U.S. gold gained about $9 to
$1,402.40.
* Orders for long-lasting U.S. manufactured goods recorded
their biggest drop in nearly a year in July and a gauge of
planned business spending on capital goods also tumbled, casting
a shadow over the economy early in the third quarter.
* The report on Monday added to other data for July on
industrial production, housing starts and new home sales that
have suggested economic growth this quarter will probably not
accelerate as much as economists had hoped.
* Gold climbed about 0.6 percent on Monday as traders
believed the weak data could delay the Fed stimulus tapering,
that economists had largely expected to start from next month.
* Gold's break above $1,400 an ounce on Monday for the first
time since June 7, and a bullish "cup and handle" chart pattern,
suggest more gains are in store for the precious metal which may
have bottomed out two months ago, technical analysts said.
* India is considering asking gold traders to produce a
proof of payment for their jewellery exports, trade body
officials said on Monday, a move which may tighten supplies in
the world's top bullion buyer.
* The Obama administration warned Congress that the United
States could run out of money to pay its bills soon after
mid-October if lawmakers do not move swiftly to raise a limit on
government borrowing.
* For the top stories on metals and other news, click
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MARKET NEWS
* The dollar was marking time against major currencies on
Tuesday after disappointing U.S. data dragged Treasury yields
lower.
DATA/EVENTS (GMT)
0800 Germany Ifo business climate
1145 U.S. ICSC weekly chain store sales
1230 U.S. Chicago Fed manufacturing index
1300 U.S. CaseShiller home price index
1400 U.S. Consumer confidence
1400 U.S. Richmond Fed manufacturing index
Precious metals prices 0007 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1402.56 -1.84 -0.13 -16.24
Spot Silver 24.23 -0.04 -0.16 -19.98
Spot Platinum 1548.24 8.39 +0.54 0.86
Spot Palladium 745.97 1.97 +0.26 7.80
COMEX GOLD DEC3 1402.40 9.30 +0.67 -16.31 2517
COMEX SILVER SEP3 24.24 0.22 +0.94 -20.03 751
Euro/Dollar 1.3376
Dollar/Yen 98.29
COMEX gold and silver contracts show the most active months
(Reporting by A. Ananthalakshmi; Editing by Joseph Radford)